Question:
An employer gives all salesmen fuel cards to buy all fuel, and no reimbursement is made for private fuel. All bar one have company cars, and pay the P11D fuel charge. The other one has his own car. What's the tax on the private fuel element for him? He has mileage records identifying private miles and business miles.
Arthur Weller replies:
Since no reimbursement is made for private fuel, this employee will be assessable like any other employee for the car fuel charge. However, since he is using his own car for business mileage, this employee can claim tax relief per the approved mileage allowances, i.e. 45p per mile for the first 10,000 business miles in the tax year, and 25p per mile for each additional business mile.
